Low-cost car insurance in Tennessee

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In Tennessee, Travelers offers the cheapest average premium at $1,657 per year. For comparison, the statewide average monthly cost is $184, though individual rates vary depending on your driving profile, location, and vehicle.

Every state sets its own car insurance rules. In Tennessee, the minimum liability requirement is $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident.

For drivers who want greater protection, full coverage can be a smart investment. It combines liability with both collision and comprehensive coverage, ensuring that your own car is also covered in the event of an accident, theft, weather damage, or other unexpected events.

Below, we highlight which insurers provide the most affordable rates across different driver categories.

Key Takeaways

Travelers has the lowest average car insurance premium in Tennessee, costing $1,657 per year. That’s $557 the state average.
For drivers with an at-fault accident on record, Travelers offers the most affordable coverage at around $2,460 annually.
The 37604 ZIP code stands out as the cheapest area for auto insurance in Tennessee, with an average yearly cost of $1,590.

Low-cost car insurance companies in Tennessee

Travelers offers the lowest car insurance rates in Tennessee, with an average annual premium of $1,657 per year. It’s $557 less expensive than the average car insurance cost in Tennessee. Your actual rate will vary based on factors such as your driving history, age, ZIP code and the make and model of your car.

When shopping for auto insurance, compare rates from multiple companies to make sure you’re getting the best deal.

Below are the annual rates from low-cost car insurance companies..

Company	Average annual rates
Travelers	$1,657
GEICO	$1,673
Erie Insurance	$2,004
Farm Bureau Insurance of Tennessee	$2,067
Farmers	$2,190
Nationwide	$2,373
Progressive	$2,661
State Farm	$3,073
Allstate	$3,242
USAA*	$1,271

*USAA is only available to military community members and their families.

How we choose low-cost car insurance companies in Tennessee

170+

Carriers reviewed

78M+

Quotes analysed

34K+

ZIP codes examined

ZIP codes with the cheapest car insurance in Tennessee

Drivers in 37604 benefit from the lowest average premium in the state, at $1,590 per year. See the table below to find other ZIP codes in Tennessee where insurance tends to be cheaper.

ZIP code	City	Average annual rates
37604	Johnson City	$1,590
37601	Johnson City	$1,591
37659	Jonesborough	$1,666
37663	Colonial Heights	$1,674
37684	Mountain Home	$1,701
37615	Johnson City	$1,722
37614	Johnson City	$1,726
37690	Telford	$1,737
37620	Bristol	$1,744
37643	Elizabethton	$1,751

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Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

Car insurance rates in Tennessee by city

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Low-cost car insurance in Tennessee by age

Young drivers often face the highest premiums. In Tennessee, for example, a 16-year-old pays $8,568 more than a 40-year-old driver.

The table below shows how rates change by age group.

Age group	Full coverage annual premiums
Teens (16-19)	$7,982
Young Adults (20-24)	$3,611
Adults (25-60)	$2,199
Seniors (65-75)	$2,099

Low-cost car insurance in Tennessee by driver history

Your driving record is one of the biggest factors in your insurance price. Tickets or accidents will raise your premium, while drivers with clean records are considered lower risk and typically receive more affordable coverage.

Low-cost car insurance after a speeding ticket in Tennessee

Just one speeding ticket in Tennessee can raise your rates by 39% – $855 more per year. Along with the ticket fine, that makes speeding an expensive mistake. The table below shows insurers offering lower-cost options even with a violation.

Company	Average annual premium	New rate after accident	% Increase	$ Increase
Erie Insurance	$2,004	$2,166	8%	$163
Travelers	$1,657	$2,530	53%	$873
GEICO	$1,673	$3,066	83%	$1,394
Progressive	$2,661	$3,242	22%	$581
State Farm	$3,073	$3,341	9%	$268
Nationwide	$2,373	$3,545	49%	$1,172
Farmers	$2,190	$3,577	63%	$1,387
Allstate	$3,242	$3,641	12%	$399
USAA*	$1,271	$1,517	19%	$246

*USAA is only available to military community members and their families.

Low-cost car insurance after an accident in Tennessee

Travelers offers the lowest car insurance rates to drivers after an at-fault accident at $2,460 a year.

If you’re in an accident and are at fault, you will see your car insurance premiums increase. However, this doesn’t mean you can’t shop around to find better rates.

Below, you’ll see which companies offer low-cost car insurance for drivers with one accident on their record.

Company	Average annual premium	New rate after accident	% Increase	$ Increase
Travelers	$1,657	$2,460	48%	$802
Erie Insurance	$2,004	$2,663	33%	$659
GEICO	$1,673	$3,200	91%	$1,528
State Farm	$3,073	$3,609	17%	$536
Farmers	$2,190	$3,616	65%	$1,426
Nationwide	$2,373	$3,888	64%	$1,516
Progressive	$2,661	$4,219	59%	$1,557
Allstate	$3,242	$5,137	58%	$1,895
USAA*	$1,271	$1,925	51%	$654

*USAA is only available to military community members and their families.

Low-cost car insurance after a DUI in Tennessee

A DUI often places drivers in the high-risk driver category, resulting in much higher rates. Still, some companies in Tennessee keep their premiums lower than others. The table below shows the most affordable options available after a DUI.

Company	Average annual premium	New rate after accident	$ Increase	% Increase
Travelers	$1,657	$2,636	$978	59%
GEICO	$1,673	$3,122	$1,450	87%
Erie Insurance	$2,004	$3,158	$1,155	58%
Progressive	$2,661	$3,288	$627	24%
State Farm	$3,073	$3,341	$268	9%
Allstate	$3,242	$4,461	$1,219	38%
Farmers	$2,190	$4,613	$2,423	111%
Nationwide	$2,373	$4,891	$2,519	106%
USAA*	$1,271	$2,459	$1,188	93%

*USAA is only available to military community members and their families.

Average cost of car insurance Tennessee

Full coverage insurance costs more than minimum liability insurance, but the extra cost is worth it for most drivers. That’s because minimum liability only pays for injuries or damage you cause to others, leaving you to cover repairs or replacement of your own car out of pocket. Full coverage, on the other hand, includes collision and comprehensive insurance, so your vehicle is protected in situations like accidents, theft, storms, or vandalism.

The average cost of full coverage car insurance in Tennessee is $299 less than the national average car insurance rates in the U.S.

We recommend that you carry at least coverage limits of 100/300/100 – that’s $100,000 in bodily injury coverage per person, $300,000 per accident, and $100,000 in property damage coverage. These limits provide a better safety net if you’re involved in a serious accident where costs could quickly exceed minimum requirements.

What is full coverage car insurance?

Full coverage car insurance includes bodily injury liability and property damage liability coverage, as well as comprehensive and collision coverage. Collision insurance covers your vehicle if it’s damaged or destroyed in an accident, while comprehensive insurance provides protection against damage that is caused by something other than collisions, such as hail or theft.

If you lease or finance your car in Tennessee, your lender may ask you to purchase collision and comprehensive insurance beyond the state-mandated liability coverage.

The bottom line on saving and staying protected

It’s natural to look for ways to lower your insurance costs, but cutting corners on coverage can leave you financially vulnerable after an accident.

Make sure you choose a policy that balances affordability with protection. Always compare quotes from at least three companies to find low-cost car insurance in Tennessee.

Methodology

Insure.com gathered data from Quadrant Information Services to get car insurance rates in Tennessee. The rates are based on a sample profile of a 40-year-old male and female driving a Honda Accord LX with a good insurance score and no violations on record for a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductibles.

We analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes nationwide.

To determine car insurance rates for high-risk drivers with a history of traffic violations, we used a sample profile of a 40-year-old male and female driver who own a Honda Accord LX.

We also used sample profiles of drivers from different age groups: Teen drivers (Age 16-19), young drivers (Age 20-24), adult drivers (Age 25-60) and senior drivers (Age 65-75)

We determined the premiums for a high-risk driver with the following incidents applied

1 At-fault property damage accident over $2K
1 At-fault property damage accident under $2K
At-fault bodily injury accident
Poor credit
DUI/DWI first offense
Speeding 30+ over limit
Speeding ticket 1-10 MPH over limit
Speeding ticket 11-29 MPH over the limit

These are sample rates, and your exact rates may vary.

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.